Welcome!

@CloudExpo Authors: Elizabeth White, Liz McMillan, Yeshim Deniz, Pat Romanski, Jeev Trika

News Feed Item

Demandware Announces Third Quarter 2012 Financial Results

Demandware®, Inc. (NYSE: DWRE), a leader in on-demand ecommerce, today announced financial results for its third quarter ended September 30, 2012.

Third Quarter Highlights

  • Total revenue for the third quarter was $18.7 million, a 39% year over year increase from $13.5 million in the third quarter of 2011
  • Subscription revenue for the third quarter was $16.3 million, a 45% year over year increase from $11.2 million in the third quarter of 2011
  • 137 live customers and 517 live sites at September 30, 2012
  • Order Center, Demandware’s order management application, implemented in production environment for an early adopter customer

“Our strong subscription revenue growth in the third quarter is further evidence that the Demandware Commerce platform empowers our customers to grow faster, innovate quicker and launch new eCommerce sites more rapidly,” stated Tom Ebling, Chief Executive Officer of Demandware. “We believe that our robust cloud-based eCommerce solution is the best alternative to meet the rigorous requirements of today’s fastest growing retailers and branded manufacturers. Our third quarter financial results demonstrate that our solution is helping customers meet these requirements enabling them to grow their eCommerce businesses. ”

  • Demandware signed significant new customers during the quarter including American Golf, Black Diamond, and Sunbeam Products (Jarden Consumer Solutions).
  • Browns Shoes, Oreck, Gianni Versace, Pier 1 Imports, Tamaris Shoes, and GORE BIKE WEAR® and GORE RUNNING WEAR® Apparel brands from W.L. Gore & Associates, Inc. were among the leading companies that launched new initial sites on the Demandware Commerce platform during the third quarter.
  • Existing customers like Butlers GmbH, Clarins, L’Oreal, New Balance, Reitmans, and Summit Sports launched new ecommerce sites for new geographies or for new brands on the Demandware Commerce platform.

“During the quarter, we continued to invest in expanding our global sales team, enhancing our brand awareness, and innovating our technology platform,” stated Scott Dussault, Demandware Chief Financial Officer. “We are confident that these investments will enable us to further deepen our penetration in the large, robust market for enterprise-class, cloud based eCommerce solutions.”

Demandware’s loss from operations for the third quarter of 2012 was $3.6 million, as compared to a loss from operations of $1.5 million for the same period in 2011, reflecting the company's increased investments to support the growth of its business.

Demandware’s GAAP net loss for the third quarter of 2012 was $3.5 million, or $(0.12) per share attributable to common stockholders, as compared to a net loss of $2.1 million, or $(0.80) per share attributable to common stockholders, for the third quarter of 2011.

Non-GAAP net loss for the third quarter of 2012 was $1.3 million, or $(0.04) per share, as compared to non-GAAP net loss of $1.8 million, or $(0.42) per share, for the third quarter of 2011. (1)

(1)Non-GAAP net loss excludes expenses related to stock-based compensation. Non-GAAP net loss per share excludes expenses related to stock-based compensation and the accretion of redeemable preferred stock.

Quarterly Conference Call

To access the call at 8:30 a.m. today, please dial (866) 783-2140 in the U.S. or +1 (857) 350-1599 internationally. The Passcode for the call is: 23204485. A live webcast of the call will also be available on the investor relations section of the company’s website. An audio replay will be available for one week following the conclusion of the call through November 13, 2012. The replay number is (888) 286-8010 in the U.S. or +1 (617) 801-6888 internationally. The Passcode for the replay is: 17321753. The replay will also be available as a webcast on Demandware’s Investor Relations website.

About Demandware

Demandware is a leading provider of software-as-a-service (SaaS) ecommerce solutions that enable companies to easily design, implement and manage their own customized ecommerce sites, including websites, mobile applications and other digital storefronts. Customers use our highly scalable and integrated Demandware Commerce platform to more easily launch and manage multiple ecommerce sites, initiate marketing campaigns more quickly, and improve ecommerce traffic. For more information about Demandware, visit www.demandware.com, call 888-553-9216 or email [email protected].

Demandware is a registered trademark of Demandware, Inc.

Forward-looking Statements

This release contains forward-looking statements, including statements regarding Demandware's future financial performance, market growth, the demand for Demandware's solutions, and general business conditions. Any forward-looking statements contained in this press release are based upon Demandware's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Demandware's expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Demandware disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, our ability to attract new customers; the extent to which customers renew their contracts for our solution; the seasonality of our business; our ability to manage our growth; the continued growth of the market for on-demand software; the timing and success of solutions offered by our competitors; unpredictable macro-economic conditions; the loss of any of our key employees; the length of the sales and implementation cycles for our solutions; increased demands on our infrastructure and costs associated with operating as a public company; failure to protect our intellectual property; changes in current tax or accounting rules; and other risk and uncertainties. Further information on potential factors that could affect actual results is included in Demandware’s reports filed with the SEC.

Non-GAAP Financial Measures

Demandware has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP net loss and non-GAAP net loss per share. Demandware uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Demandware’s ongoing operational performance. Demandware believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial measures with other companies in Demandware's industry, many of which present similar non-GAAP financial measures to investors. Non-GAAP net loss and non-GAAP net loss per share exclude expenses related to stock-based compensation and the accretion of redeemable preferred. These amounts are often difficult to predict and often excluded by other companies to help investors understand the operational performance of their business. Non-GAAP financial measures that the Company uses may differ from measures that other companies may use. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release.

 
 
Demandware, Inc.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
       
September 30, 2012 December 31, 2011
ASSETS
 
Current assets:
Cash and cash equivalents $ 71,886 $ 14,939
Short-term investments 37,021 -
Accounts receivable — net of allowance of doubtful accounts and credit memos 15,634 16,930
Prepaid expenses and other current assets   3,691     1,878  
Total current assets 128,232 33,747
 
PROPERTY AND EQUIPMENT — Net 8,925 6,404
OTHER ASSETS   1,010     2,735  
Total assets $ 138,167   $ 42,886  
 
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
 
Current Liabilities:
Current portion of notes payable $ 3,403 $ 2,098
Accounts payable 2,650 1,884
Accrued expenses 8,538 7,023
Deferred revenue 17,322 13,960
Deferred rent   118     57  
Total current liabilities   32,031     25,022  
 
Long-term liabilities:
Deferred revenue 13,393 12,210
Notes payable 2,897 1,882
Deferred rent 1,004 682
Preferred stock warrant liability   -     107  
Total liabilities   49,325     39,903  
 
Series A redeemable convertible preferred stock - 14,976
Series B redeemable convertible preferred stock - 18,158
Series C redeemable convertible preferred stock - 27,884
Series D redeemable convertible preferred stock   -     26,585  
Total redeemable convertible preferred stock   -     87,603  
 
Stockholders' equity (deficit):
Common stock 296 45
Additional paid-in capital 168,506 -
Accumulated other comprehensive loss (48 ) (53 )
Accumulated deficit   (79,912 )   (84,612 )
Total stockholders’ equity (deficit)   88,842     (84,620 )
 
Total Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) $ 138,167   $ 42,886  
 
 

Demandware, Inc.
Condensed Consolidated Statements of Operations
(unaudited; in thousands, except per share data)
             
Three Months Ended Nine Months Ended
September 30, September 30,

2012

2011

2012

2011

Revenue:
Subscription $ 16,250 $ 11,220 $ 45,061 $ 30,902
Services   2,456     2,255     8,095     7,029  
Total revenue   18,706     13,475     53,156     37,931  
 
Cost of revenue:
Subscription 3,501 2,473 9,407 6,842
Services   2,990     2,958     8,598     7,655  
Total cost of revenue   6,491     5,431     18,005     14,497  
 
Gross profit 12,215 8,044 35,151 23,434
 
Operating expenses:
Sales and marketing 8,496 5,082 24,402 14,385
Research and development 3,935 2,934 11,490 8,345
General and administrative   3,350     1,526     9,751     4,498  
Total operating expenses   15,781     9,542     45,643     27,228  
 
Loss from operations   (3,566 )   (1,498 )   (10,492 )   (3,794 )
 
Other income (expense) :
Interest income 50 2 97 7
Interest expense (109 ) (79 ) (263 ) (198 )
Other income (expense)   193     (391 )   (455 )   178  
 
Other income (expense) — net   134     (468 )   (621 )   (13 )
Loss before income taxes (3,432 ) (1,966 ) (11,113 ) (3,807 )
Income Tax Expense   39     125     235     180  
 
Net Loss $ (3,471 ) $ (2,091 ) $ (11,348 ) $ (3,987 )
Accretion of redeemable convertible preferred stock   -     (1,318 )   (1,172 )   (3,956 )
 
Net loss attributable to common stockholders $ (3,471 ) $ (3,409 ) $ (12,520 ) $ (7,943 )
 
Net loss per share attributable to common stockholders,
basic and diluted $ (0.12 ) $ (0.80 ) $ (0.57 ) $ (2.20 )
Weighted average common shares outstanding,
basic and diluted   29,200     4,273     22,158     3,617  
 
 

Demandware, Inc.
Stock Based Compensation Expense
(unaudited, in thousands)
             
 
Three Months Ended Nine Months Ended
September 30, September 30,

2012

2011

2012

2011

 
Cost of subscription revenue $ 57 $ 5 $ 119 $ 16
Cost of services revenue 233 22 492 71
Sales and marketing 559 65 1,236 175
Research and development 484 33

 

1,035 455
General and administration   856   158   1,920   426
 
$ 2,189 $ 283 $ 4,802 $ 1,143
 
 

Demandware, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
           
Three Months Ended Nine Months Ended
September 30, September 30,

2012

2011

2012

2011

 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (3,471 ) $ (2,091 ) $ (11,348 ) $ (3,987 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization 892 719 2,432 2,119
(Gain) loss on disposal of property and equipment (3 ) - (3 ) 86
Re-measurement of preferred stock warrant liability - (2 ) 426 (5 )
Stock-based compensation 2,189 283 4,802 1,143
Deferred rent expense 144 44 382 311
Other non-cash reconciling items 65 10 93 94
Changes in operating assets and liabilities:
Accounts receivable (1,039 ) (1,112 ) 1,296 (1,087 )
Prepaid expenses and other current assets (385 ) (52 ) (1,259 ) (271 )
Other long-term assets 78 (89 ) 182 (89 )
Accounts payable (134 ) 325 733 (63 )
Accrued expenses 1,167 1,174 1,442 2,108
Deferred revenue   134     378     4,545     (211 )
Net cash (used in) provided by operating activities   (363 )   (413 )   3,723     148  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (503 ) (304 ) (3,659 ) (3,239 )
Purchase of marketable securities (21,258 ) - (46,577 ) -
Sale and maturity of marketable securities 9,499 - 9,499 -
Proceeds from sale of property and equipment - - - 26
(Increase) decrease in restricted cash and other assets   (3 )   2     (168 )   (41 )
 
Net cash used in investing activities   (12,265 )   (302 )   (40,905 )   (3,254 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from initial public offering, net of underwriting discounts and commissions - - 94,116 -
Proceeds from exercise of stock options 627 356 1,030 1,568
Deferred offering costs (96 ) (1,089 ) (1,561 ) (1,089 )
Proceeds from issuance of notes payable 157 201 2,757 2,570
Payments of note payable   (954 )   (568 )   (2,219 )   (1,316 )
 
Net cash (used in) provided by financing activities   (266 )   (1,100 )   94,123     1,733  
 
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS   43     (104 )   6     (2 )
 
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (12,851 ) (1,919 ) 56,947 (1,375 )
 
CASH AND CASH EQUIVALENTS — Beginning of period   84,737     17,692     14,939     17,148  
 
CASH AND CASH EQUIVALENTS — End of period $ 71,886   $ 15,773   $ 71,886   $ 15,773  
 
 

Demandware, Inc.
Calculation of Non-GAAP Operating Loss, Non-GAAP Net Loss, and Non-GAAP Net Loss Per Share
(unaudited; in thousands, except per share data)
           
Three Months Ended Nine Months Ended
September 30, September 30,

2012

2011

2012

2011

Operating loss:
GAAP operating loss $ (3,566 ) $ (1,498 ) $ (10,492 ) $ (3,794 )
Add back:
Stock-based compensation   2,189     283     4,802     1,143  
Total non-GAAP operating loss (1,377 ) (1,215 ) (5,690 ) (2,651 )
 
Net loss:
GAAP net loss $ (3,471 ) $ (2,091 ) $ (11,348 ) $ (3,987 )
Add back:
Stock-based compensation   2,189     283     4,802     1,143  
Total non-GAAP net loss (1,282 ) (1,808 ) (6,546 ) (2,844 )
 
Non-GAAP net loss per share:
Basic & Diluted $ (0.04 ) $ (0.42 ) $ (0.30 ) $ (0.79 )

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, will explore the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences betwee...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
The initial debate is over: Any enterprise with a serious commitment to IT is migrating to the cloud. But things are not so simple. There is a complex mix of on-premises, colocated, and public-cloud deployments. In this power panel at 18th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will look at the present state of cloud from the C-level view, and how great companies and rock star executives can use cloud computing to meet their most ambitious and disruptive business ...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
SYS-CON Events announced today that Isomorphic Software will exhibit at SYS-CON's [email protected] at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, high-productivity enterprise web applications for any device. SmartClient couples the industry’s broadest, deepest UI component set with a java server framework to deliver an end-...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...